What Can Affect Your Payment?
- Market Conditions and Operational Issues
- Adjustments
- Overpayments (Negative Balance)
- Suspense
- Federal Withholding
Market Conditions and Operational Issues
Payments will vary from month to month due to fluctuations in price, as well as varying production from individual wells. Payments also may be impacted by routine maintenance or operating issues which may affect the volumes produced from a well during a given time period.
Adjustments
Quantity or price revisions may necessitate adjustments to your payment. If you were either overpaid or underpaid, adjustments are necessary to correct the previous payment. It is a good idea to keep your check detail for future reference, in the event adjustments occur.
Overpayments (Negative Balance)
In the event an owner is overpaid, adjustments are processed to recoup the overpayment. If the recoupment amount is larger than the owner’s current month payment, the owner is said to have a "negative balance." Adjustments made to correct overpayments are posted to a special account. Proceeds attributable to current production are also posted to this account to offset the negative balance. When the amount due the owner reaches the required minimum payment amount (usually $25.00), the owner will begin receiving checks again. The first check detail generated after a negative balance has been recouped will show the adjustments that caused the negative balance and the subsequent positive offsets.
Suspense
On occasion, payments are held in suspense because of the transfer of a property interest from one owner to another, notice of death, lack of address, and other legal and operational issues. Amounts due are accumulated and are released when the matter in question has been resolved and EOG has received and processed all related documents. All payments are retroactive to the date of the suspension.
Federal Withholding
If a valid Tax Identification Number has not been provided to EOG, the Internal Revenue Service requires withholding a certain percentage of your payment until this information is provided to EOG.
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